Main site > MoneySavingExpert.com Forums > Essential Money > Credit Cards > Warning high interest card 39.9 APR (Page 1)

IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
Warning high interest card 39.9 APR
Closed Thread
Views: 10,095
Thread Tools Search this Thread Display Modes
# 1
debbiedebt
Old 21-01-2008, 8:26 PM
MoneySaving Stalwart
 
Join Date: Nov 2007
Posts: 221
Default Warning high interest card 39.9 APR

This is to warn everyone of this extremely high interest rate. I received an email - today copied below:-

At Vanquis we think that more people should have the chance to have a credit if they want one. And that includes you - if your circumstances have recently changed, you've got little or no history, have had problems in the past, or just have a lower than average income.

All of our Visa cards come with:

- No annual fee
- Up to 56 days interest free on purchases
- Free additional cardholder
- Free fraud monitoring - we'll warn you of any suspicious activity on your account
- Chip & PIN technology for added security whenever you use your card
- Visa is widely accepted in the UK and abroad
- Convenient for paying online and over the phone
- Friendly UK call centres
- typical 39.9% APR

Debt Free Date December June 2019

GC January 0/180
debbiedebt is offline
Report Post
# 2
marshall2k
Old 21-01-2008, 8:47 PM
MoneySaving Convert
 
Join Date: Aug 2006
Posts: 195
Default

This card is not designed to be competitive on the APR front. It is meant for those that cannot get credit anywhere else due to perceived risk. Borrowing on it would be a bad move but using it and paying off every month will help someone with no/damaged credit history.
marshall2k is offline
Report Post
# 3
SiuLoong
Old 21-01-2008, 9:02 PM
MoneySaving Stalwart
 
Join Date: Dec 2007
Posts: 216
Default

In the same area are the Capital One 'Classic' card with an APR 34.9% and Barclaycard equivalent, also with a v high rate. The idea behind these cards is that they are available for people who would otherwise be refused credit.. i.e. bad or nonexistent credit rating. The high APR is because of the increased risk of these bad or unknown quantities. Whilst using a card like this to borrow money would be disastrous and never to be recommended, using it and paying off the full balance every month can get you started in terms of a credit rating and in time allow you to build a credit history that allows you to get better credit elsewhere.

Quite rightly people should be aware of the rates, and only spend on the card if it can be fully paid off...
SiuLoong is offline
Report Post
# 4
Paul_Herring
Old 22-01-2008, 11:25 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Apr 2004
Location: Gateshead
Posts: 5,747
Send a message via Skype™ to Paul_Herring
Default

Here we go again...

http://forums.moneysavingexpert.com/...78#post2155978
Conjugating the verb 'to be":
o I am humble
o You are attention seeking
o She is Nadine Dorries
Paul_Herring is offline
Report Post
# 5
sparkie45
Old 22-01-2008, 11:38 AM
MoneySaving Convert
 
Join Date: Feb 2007
Posts: 28
Default

may be a bit thick but what does that mean in money terms



cheers sparkie45
sparkie45 is offline
Report Post
# 6
a11waysindebt
Old 22-01-2008, 11:43 AM
Serious MoneySaving Fan
 
Join Date: Sep 2007
Posts: 883
Default

No disrespect to any one,But people coming to the site that are new sometimes can't find old links concerning these issues.

I my self have been told sometimes "there are threads concerning this subject" and then get a link dated back to 2006.
a11waysindebt is offline
Report Post
The Following User Says Thank You to a11waysindebt For This Useful Post: Show me >>
# 7
yorkie1980
Old 22-01-2008, 1:06 PM
MoneySaving Convert
 
Join Date: Jul 2007
Location: york
Posts: 186
Default

Quote:
Originally Posted by Paul_Herring View Post


Debbiedebt, I've had Vanquis since June last year, have never paid a penny interest and even had a late payment charge refunded in full the only time I ever missed a payment.

As Paul_Herring says, this is a common theme, and using the search facility at the top of the page would have brought more recent posts to your attention.
It's good to be alert though and that you thought of sharing info with others
yorkie1980 is offline
Report Post
# 8
jimbo26
Old 22-01-2008, 1:11 PM
MoneySaving Stalwart
 
Join Date: Jan 2008
Posts: 375
Default

Quote:
Originally Posted by sparkie45 View Post
may be a bit thick but what does that mean in money terms



cheers sparkie45
It means if you pay off the full balance each month you don't pay a bean in interest. However fi you don't you get stung for quite a bit, far more than the mainstream cards.

If you plan to pay off the card in full every month the interest rate is immaterial.
jimbo26 is offline
Report Post
# 9
yorkie1980
Old 22-01-2008, 1:12 PM
MoneySaving Convert
 
Join Date: Jul 2007
Location: york
Posts: 186
Default

Quote:
Originally Posted by sparkie45 View Post
may be a bit thick but what does that mean in money terms



cheers sparkie45
Hi Sparky, this website has an example calculator showing repayments - http://www.whatsthecost.com/creditCard.aspx

I googled that site, so not sure how good it is, but hopefully it gives some idea.

The golden rule is though, that if you don't borrow on Credit Cards, then the interest rate is insignificant!! Pay them off in full each month!!
yorkie1980 is offline
Report Post
The Following User Says Thank You to yorkie1980 For This Useful Post: Show me >>
# 10
yorkie1980
Old 22-01-2008, 1:13 PM
MoneySaving Convert
 
Join Date: Jul 2007
Location: york
Posts: 186
Default

Thanks jmbo26, you beat me to it!!
yorkie1980 is offline
Report Post
# 11
sparkie45
Old 22-01-2008, 2:04 PM
MoneySaving Convert
 
Join Date: Feb 2007
Posts: 28
Default

cheers for the link been offered one loads of times from capital one at 34.9 apr didnt understand what it was think i will leave it


cheers sparkie45
sparkie45 is offline
Report Post
# 12
neverdespairgirl
Old 22-01-2008, 2:18 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: May 2006
Location: central London
Posts: 15,995
Default

Hi - you are right, this would be a very poor card if you were going to have a balance sitting on it.

But it does have other uses. Some people have a lot of trouble getting any credit at all - for example, they have no previous credit rating, they are young, they have had defaults etc in the past.

This card is therefore useful to them because they'll give it to almost anyone. It is much easier to get than most CCs. So if you get one, and pay it off every month, it helps you build a credit record, showing that the payments are made every month.

But with an APR like that, it shouldn't be used for borrowing at all, and ought to be paid off at once.
neverdespairgirl is offline
Report Post
# 13
MABLE
Old 22-01-2008, 7:06 PM
Serious MoneySaving Fan
 
Join Date: Aug 2004
Location: Still at BugsyBrownes/U-KIP
Posts: 1,840
Default

If you pay the balance off each month and yes some people do that, then it could be a very useful card to hold. I myself do not have one because I have an A1 credit rating but some poorer members of society may find it beneficial if they want to build up their credit history or rating etc.

Also the apr quoted is alot cheaper than a door to door lender. So best not to knock it without looking at all the facts.
MABLE is offline
Report Post
Closed Thread

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT +1. The time now is 3:25 PM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 01 October 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

TuneChecker Top Albums

  • ED SHEERANX (DELUXE EDITION)
  • ALT-JTHIS IS ALL YOURS
  • SAM SMITHIN THE LONELY HOUR (DELUXE EDITION)

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.